Developments in the Taxation of Corporate Profit in the OECD since 1965: Rates, Bases and Revenues
AbstractThis paper describes developments in corporation taxes in the OECD over the last 40 years. It pays particular attention to the apparent divergence in the trends of the average statutory corporation tax rate and the average ratio of corporation tax revenues to GDP: the former has declined over time, while the latter has risen. It develops a simple framework for assessing the expected effect of the tax rate on tax revenues, and estimates the relationship using a panel of aggregate data for 20 OECD countries from 1965 to 2004, controlling for a measure of the tax base and other factors. There is only weak evidence of any relationship between the two. Evidence which does support a relationship is consistent with the finding of Clausing (2006) that the relationship is nonlinear, and that the implied revenue-maximising tax rate is likely to be low.
Download InfoIf you experience problems downloading a file, check if you have the proper application to view it first. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.
Bibliographic InfoPaper provided by Oxford University Centre for Business Taxation in its series Working Papers with number 0704.
Date of creation: 2007
Date of revision:
Contact details of provider:
Postal: Park End Street, Oxford OX1 1HP UK
Phone: +44 (0)1865 288800
Fax: +44 (0)1865 288805
Web page: http://www.sbs.ox.ac.uk/ideas-impact/tax/
More information through EDIRC
This paper has been announced in the following NEP Reports:
- NEP-ALL-2007-10-20 (All new papers)
- NEP-HIS-2007-10-20 (Business, Economic & Financial History)
- NEP-PBE-2007-10-20 (Public Economics)
- NEP-PUB-2007-10-20 (Public Finance)
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
- Alan J. Auerbach & James M. Poterba, 1987.
"Why Have Corporate Tax Revenues Declined?,"
NBER Working Papers
2118, National Bureau of Economic Research, Inc.
- Alan J. Auerbach, 2005.
"Who Bears the Corporate Tax? A review of What We Know,"
NBER Working Papers
11686, National Bureau of Economic Research, Inc.
- Alan J. Auerbach, 2006. "Who Bears the Corporate Tax? A Review of What We Know," NBER Chapters, in: Tax Policy and the Economy, Volume 20, pages 1-40 National Bureau of Economic Research, Inc.
- Michael P. Devereux & Alexander Klemm, 2003.
"Measuring Taxes on Income from Capital: Evidence from the UK,"
CESifo Working Paper Series
968, CESifo Group Munich.
- Michael Devereux & Alexander Klemm, 2003. "Measuring taxes on income from capital: evidence from the UK," IFS Working Papers W03/03, Institute for Fiscal Studies.
- Devereux, Michael P & Griffith, Rachel, 2003.
"Evaluating Tax Policy for Location Decisions,"
International Tax and Public Finance,
Springer, vol. 10(2), pages 107-26, March.
- Devereux, Michael P & Lockwood, Ben & Redoano, Michela, 2002.
"Do Countries Compete Over Corporate Tax Rates?,"
The Warwick Economics Research Paper Series (TWERPS)
642, University of Warwick, Department of Economics.
- Michael P. Devereux & Rachel Griffith & Alexander Klemm, 2002. "Corporate income tax reforms and international tax competition," Economic Policy, CEPR;CES;MSH, vol. 17(35), pages 449-495, October.
- Slemrod, Joel, 2004. "Are corporate tax rates, or countries, converging?," Journal of Public Economics, Elsevier, vol. 88(6), pages 1169-1186, June.
- Huizinga, Harry & Laeven, Luc, 2007. "International Profit Shifting within European Multinationals," CEPR Discussion Papers 6048, C.E.P.R. Discussion Papers.
- Zodrow, George R., 2010. "Capital Mobility And Capital Tax Competition," National Tax Journal, National Tax Association, vol. 63(4), pages 865-901, December.
- Aleksandra Riedl & Silvia Rocha-Akis, 2008.
"Testing the tax competition theory: How elastic are national tax bases in Western Europe?,"
142, Oesterreichische Nationalbank (Austrian Central Bank).
- Aleksandra Riedl & Silvia Rocha-Akis, 2007. "Testing the tax competition theory: How elastic are national tax bases in western Europe?," Department of Economics Working Papers wuwp112, Vienna University of Economics, Department of Economics.
- Simon Loretz, 2008.
"Corporate taxation in the OECD in a wider context,"
Oxford Review of Economic Policy,
Oxford University Press, vol. 24(4), pages 639-660, winter.
- Nadja Dwenger & Viktor Steiner, 2008.
"Effective Profit Taxation and the Elasticity of the Corporate Income Tax Base: Evidence from German Corporate Tax Return Data,"
Discussion Papers of DIW Berlin
829, DIW Berlin, German Institute for Economic Research.
- Dwenger, Nadja & Steiner, Viktor, 2008. "Effective profit taxation and the elasticity of the corporate income tax base: Evidence from German corporate tax return data," arqus Discussion Papers in Quantitative Tax Research 57, arqus - Arbeitskreis Quantitative Steuerlehre.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Li Liu).
If references are entirely missing, you can add them using this form.